question archive 1) How are the parameters of an OLS model estimated? What is meant by "least squares?" 2
Subject:EconomicsPrice: Bought3
1) How are the parameters of an OLS model estimated? What is meant by "least squares?"
2. You know how to calculate a p-value, but how do you interpret a p-value? Use as plain of English as possible to explain what a p-value tells you.
3. What is the "error term" of a regression? What does it represent?
4. Is the estimated effect of the auto-regressive term statistically significant?
5. Explain - in as plain of English as possible - why it is important to only run time series analysis on stationary data.
6. Explain - in as plain of English as possible - why first-differencing may solve the problem of spurious regression caused by non-stationary variables.